Alcoa (AA) vs Solstice Advanced Materials Inc. (SOLS)

Alcoa and Solstice Advanced Materials Inc. are both in the Basic Materials sector (Aluminum and Specialty Chemicals). Alcoa is the larger, with a market value of $10.7B against $9.5B — 1.1× the size. Alcoa trades at the lower P/E: 8.5× against 27.4×. Alcoa has the higher net margin (9.39% vs 5.13%) and the lower return on invested capital (3.72% vs 12.7%). Both pay a dividend; Alcoa yields more (0.96% vs 0.38%). Across the 20 metrics below, Alcoa leads on 16 and Solstice Advanced Materials Inc. on 4.

Valuation

Metric AA SOLS
P/E 8.48 27.38
P/S 0.80 2.30
P/B 1.49 5.93
Price to free cash flow 30.24 53.77
EV/EBITDA 9.15 13.26
EV/Sales 0.87 2.62
Earnings yield 11.79% 3.65%
Free cash flow yield 3.31% 1.86%

Profitability

Metric AA SOLS
Gross margin 18.79% 30.62%
Operating margin 3.61% 14.36%
Net margin 9.39% 5.13%
Free cash flow margin 2.66% 4.27%
Return on equity 18.77% 8.81%
Return on assets 8.02% 7.10%
Return on invested capital 3.72% 12.65%

Growth

Metric AA SOLS
Revenue growth (TTM) 6.46% —
EPS growth (last fiscal year) 1,600.00% (60.91%)
Revenue growth, 5-year CAGR 6.68% —
Net income growth, 5-year CAGR 0.00% —

Health

Metric AA SOLS
Debt to equity 0.30 1.30
Current ratio 1.54 1.46
Net debt to EBITDA 0.90 1.85

Dividend

Metric AA SOLS
Dividend yield 0.96% 0.38%
Payout ratio 0.08 0.10

Size

Metric AA SOLS
Market cap 10.67b 9.52b

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